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2018 (8) TMI 249 - AT - Service TaxRenting of Immovable Property Services or business support service - sharing of the infrastructure of the hospital - Held that:- It is apparent from record and is an admitted fact also that with three of the diagnostic centres the appellant has entered into separate agreements. The relevant extract has been mentioned in the show cause notice. The perusal thereof shows that the diagnostic centres are allowed by the appellant to install and operate their equipments in the space provided by the appellant within the Hospital premises with the condition and they shall be creating necessary infrastructure at their own cost as is required specifically for their equipment - there is no element of rent is involved in the transaction between the appellant and diagnostic centre. Business Support Service - Held that:- The appellant is providing the facilitation of customer relationship to the diagnostic centres by employing their own staff to collect the amount from the patients against the diagnostic services to be received by them but to be provided by the diagnostic centres in the appellants premises. Though the appellant herein has relied upon the fact that the health services are exempted from the Tax Net and diagnosis is included as the part of the health services, but the fact remains is that in the given arrangements/agreements with the diagnostic centres the appellant is not providing any health service. It is merely collecting money on behalf of the diagnostic centres for providing them the number of patients. Hence, the share of revenue so collected in the hands of the appellant cannot be categorized as a consideration for rendering the health service to the patients - considerations received undoubtedly is for such activities as are enumerated in the definition of the BSS. The Notification dated 20.06.2012 is also not applicable at least to the amount of consideration @ 25% of the total revenue collected by the appellant from the patients to receive diagnostic health services from the diagnostic centres using appellant’s infrastructural. Management Maintenance & Repair Services to the food courts (FC) in the appellant’s premises - Held that:- The agreement of the appellant with the FCs is to provide basic amenities as water, electricity, air-conditioning, power back-up etc. It is also apparent that appellant while allowing the FCs to operate in its premises, it charges a fixed amount and also receives a fixed percentage from the sale of these FCs. The activity is opined to not to fall under definition of MMR in Section 65 (64) of the Act. It is rather an admitted fact that w.e.f. 01.06.2007, the appellant is discharging his liability as Renting of Immovable Property Services qua the consideration received from these FC’s - demand set aside. The remaining findings qua imposition of interest and the penalties are held to have no infirmity as the appellant is a big health service provider and cannot be presumed to be ignorant of law nor is so permitted. Appeal allowed in part.
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